There is a project evaluation meeting next week. You are supposed to make a presentation about the current status of the project. You will also talk about what you have done so far. Deliverables for Project Evaluation Meeting 1. Analyze the current schedule status of the project using Excel. Calculate the SPI. Is the project ahead, on or behind schedule? 2. Analyze the current cost status of the project. Calculate the CPI. Is the project under, on or over budget? 3. Write a two-page executive summary on the general status of this project. Use figures and statistics to back up you assessment (This is Part III of Homework II). 4. Based on current status, what is the projected EAC? Completion date? The remaining critical path Renovation of Shea Stadium Home of the New York Mets Background In November 2003 Ace Builders (your employer) was awarded a contract for the renovation of Shea Stadium to house the New York Mets. An artist rendition of the proposed renovations is shown in Figure 1. Figure 1. Proposed stadium for the New York Mets The construction must start on January 14, 2004 and must be completed within fifteen months. Liquidated damages (penalty clause) of $250,000 per calendar day of delay beyond March 31, 2005 is written into the contract. On the other hand Ace will receive an Early Completion Bonus of $100,000 per day for each workday the project is completed before March 31, 2005. In order to meet this aggressive schedule, the project will require around the clock construction crews, detailed project management, good construction weather, and some modern construction techniques. The project will begin with mobilizing equipment, preparing a staging area, and some minor demolition work - activities that are expected to last approximately eight weeks. Once the site is ready and all equipment mobilized, the work can start simultaneously on both the structure and the playing field. The work in the field involves excavation for installation of a new subsurface irrigation, drainage and heating facilities. This activity is followed by actual Part II Bonnie Green, Chief Estimator, agreed that in a normal year only slight delays might develop due to a shortage of labor. However, she pointed out that for such a large project, the company would have to use unionized employees and that the construction industry labor agreements with New York City were to expire on October 30, 2004. Past experience and current construction activity in the surrounding area indicated that any union tradesman would support a strike against the city. Since this is a public project, she estimates that there is a 50% chance that they would strike this project to gain the attention of the national media. Jim Brown inquired about the prospective length of a strike. Bonnie figured that such a strike would last at least four weeks. Jim was not too pleased with these prospects. He was pleased when he realized that only a small number of tasks would be impacted and that he could subcontract to non union shops minor activities such as the new seats. Jack White, Vice-President for Operations commented that an extremely cold and wet May 2003 had occurred. This factor had not been taken in to consideration during earlier estimates. Any work on the playing field would have to stop during an extended wet period. Clearly both the possibilities of a strike and of cold, wet weather introduce variability into the planning process and, more importantly, they may result in a significantly unfavorable change to the completion date that could lead to penalties, etc. With this new information, he could no longer rely on base case completion date estimate, since that analysis was based on assuming that each task began as soon its predecessor task or tasks were completed, and that the nature and duration of each task was known and invariant. At the end of the planning meeting, Jim Brown asked the project management team to study two options: - In the event of a four-week strike, how much of the $20M in profit would Ace lose? What will be the new completion date? - If the weather is indeed cold and wet (assume May time frame), should this be a major planning issue for construction of the playing field (justify your answer with numbers)? As a member of the project management team, your task is to analyze the options and produce a two-page report summarizing your results (This is Part II of Homework II). Part III Now it is December 10, 2004. The weather has been favorable and so Ace Builders did not face any problem with a strike or bad weather. Up-to-date information for the Stadium Project is given in Table 2. You must develop a status report for Mr. Brown using standard evaluation "figures of merit" such as BCWS, ACWP, BCWP, EAC and the performance SPI and CPI indexes. installation of water and drain pipes, valves, heating and control circuits, etc. Installation of the subsurface facilities (fourteen weeks) is followed by filling of the playing field and track. Only with the completion of the backfill material needed for the drainage systems (four weeks) can the installation of the artificial playing turf take place, an activity that consumes six weeks. The work on the structure itself starts with excavation and foundation preparation (four weeks) followed by the pouring of concrete footings (six weeks). Next comes the pouring of supports for box seats, faade, and luxury boxes (ten weeks), followed by erecting pre-cast concrete facade and the luxury boxes (sixteen weeks). Finish work on the boxes will be accomplished over the next five weeks. The roof must be erected on a steel structure that takes approximately four weeks to install. Prefebrication of the work will also take 4 weeks. Once the dressing rooms, offices are erected, work can start simultaneously on the lights (seven weeks) and on the scoreboard (five weeks). The date on which the project is scheduled to start, falls on a Wednesday. The contractor has bid this job with 5 -day workweeks. Part I Jim Brown, the President of Ace Builders, called a planning meeting in which he expressed great satisfaction at obtaining the contract and revealed that the company could earn a gross profit of $20,000,000 on the fixed price $350M project. (Assume this profit includes the early completion bonus). He was confident that the project could be completed on time with an allowance for the usual delays anticipated in such a large contract. Develop a high-level Gantt Chart in MS Project for presentation to the Board of Directors of Ace Builders. The board has expressed concerns about the exposure to risk from such an aggressive schedule. Using information from preparation of the bid, you developed the following gross level activities for this project, which are shown in Table 1. Make this a one-page handout (This is Part I of Homework II). Highlight the critical path and other key pieces of information. Table 1. High-level activities, precedence relationships, and durations for the new home of the Mets Table 2. Project status as of December 10, 20041 There is a project evaluation meeting next week. You are supposed to make a presentation about the current status of the project. You will also talk about what you have done so far. Deliverables for Project Evaluation Meeting 1. Analyze the current schedule status of the project using Excel. Calculate the SPI. Is the project ahead, on or behind schedule? 2. Analyze the current cost status of the project. Calculate the CPI. Is the project under, on or over budget? 3. Write a two-page executive summary on the general status of this project. Use figures and statistics to back up you assessment (This is Part III of Homework II). 4. Based on current status, what is the projected EAC? Completion date? The remaining critical path Renovation of Shea Stadium Home of the New York Mets Background In November 2003 Ace Builders (your employer) was awarded a contract for the renovation of Shea Stadium to house the New York Mets. An artist rendition of the proposed renovations is shown in Figure 1. Figure 1. Proposed stadium for the New York Mets The construction must start on January 14, 2004 and must be completed within fifteen months. Liquidated damages (penalty clause) of $250,000 per calendar day of delay beyond March 31, 2005 is written into the contract. On the other hand Ace will receive an Early Completion Bonus of $100,000 per day for each workday the project is completed before March 31, 2005. In order to meet this aggressive schedule, the project will require around the clock construction crews, detailed project management, good construction weather, and some modern construction techniques. The project will begin with mobilizing equipment, preparing a staging area, and some minor demolition work - activities that are expected to last approximately eight weeks. Once the site is ready and all equipment mobilized, the work can start simultaneously on both the structure and the playing field. The work in the field involves excavation for installation of a new subsurface irrigation, drainage and heating facilities. This activity is followed by actual Part II Bonnie Green, Chief Estimator, agreed that in a normal year only slight delays might develop due to a shortage of labor. However, she pointed out that for such a large project, the company would have to use unionized employees and that the construction industry labor agreements with New York City were to expire on October 30, 2004. Past experience and current construction activity in the surrounding area indicated that any union tradesman would support a strike against the city. Since this is a public project, she estimates that there is a 50% chance that they would strike this project to gain the attention of the national media. Jim Brown inquired about the prospective length of a strike. Bonnie figured that such a strike would last at least four weeks. Jim was not too pleased with these prospects. He was pleased when he realized that only a small number of tasks would be impacted and that he could subcontract to non union shops minor activities such as the new seats. Jack White, Vice-President for Operations commented that an extremely cold and wet May 2003 had occurred. This factor had not been taken in to consideration during earlier estimates. Any work on the playing field would have to stop during an extended wet period. Clearly both the possibilities of a strike and of cold, wet weather introduce variability into the planning process and, more importantly, they may result in a significantly unfavorable change to the completion date that could lead to penalties, etc. With this new information, he could no longer rely on base case completion date estimate, since that analysis was based on assuming that each task began as soon its predecessor task or tasks were completed, and that the nature and duration of each task was known and invariant. At the end of the planning meeting, Jim Brown asked the project management team to study two options: - In the event of a four-week strike, how much of the $20M in profit would Ace lose? What will be the new completion date? - If the weather is indeed cold and wet (assume May time frame), should this be a major planning issue for construction of the playing field (justify your answer with numbers)? As a member of the project management team, your task is to analyze the options and produce a two-page report summarizing your results (This is Part II of Homework II). Part III Now it is December 10, 2004. The weather has been favorable and so Ace Builders did not face any problem with a strike or bad weather. Up-to-date information for the Stadium Project is given in Table 2. You must develop a status report for Mr. Brown using standard evaluation "figures of merit" such as BCWS, ACWP, BCWP, EAC and the performance SPI and CPI indexes. installation of water and drain pipes, valves, heating and control circuits, etc. Installation of the subsurface facilities (fourteen weeks) is followed by filling of the playing field and track. Only with the completion of the backfill material needed for the drainage systems (four weeks) can the installation of the artificial playing turf take place, an activity that consumes six weeks. The work on the structure itself starts with excavation and foundation preparation (four weeks) followed by the pouring of concrete footings (six weeks). Next comes the pouring of supports for box seats, faade, and luxury boxes (ten weeks), followed by erecting pre-cast concrete facade and the luxury boxes (sixteen weeks). Finish work on the boxes will be accomplished over the next five weeks. The roof must be erected on a steel structure that takes approximately four weeks to install. Prefebrication of the work will also take 4 weeks. Once the dressing rooms, offices are erected, work can start simultaneously on the lights (seven weeks) and on the scoreboard (five weeks). The date on which the project is scheduled to start, falls on a Wednesday. The contractor has bid this job with 5 -day workweeks. Part I Jim Brown, the President of Ace Builders, called a planning meeting in which he expressed great satisfaction at obtaining the contract and revealed that the company could earn a gross profit of $20,000,000 on the fixed price $350M project. (Assume this profit includes the early completion bonus). He was confident that the project could be completed on time with an allowance for the usual delays anticipated in such a large contract. Develop a high-level Gantt Chart in MS Project for presentation to the Board of Directors of Ace Builders. The board has expressed concerns about the exposure to risk from such an aggressive schedule. Using information from preparation of the bid, you developed the following gross level activities for this project, which are shown in Table 1. Make this a one-page handout (This is Part I of Homework II). Highlight the critical path and other key pieces of information. Table 1. High-level activities, precedence relationships, and durations for the new home of the Mets Table 2. Project status as of December 10, 20041